:Comparison of Variable Costing and Absorption Costing.Consider the following information pertaining to a year's operations of Youngstown Manufacturing
- Units sold 1,400
- Units produced 1,600
- Direct labor $4,200
- Direct materials used 3,500
- Fixed manufacturing overhead 2,200
- Variable manufacturing overhead 300
- Selling and administrative expenses (all fixed) 700
- Beginning inventories 0
- Contribution margin 5,600
- Direct-material inventory, end 800
There are no work-in-process inventories.
1. What is the ending finished-goods inventory cost under absorption costing?
2. What is the ending finished-goods inventory cost under variable costing?